RICK RULE ON GOLD & RESOURCES: “THE STAGE IS SET FOR AN ABSOLUTELY DRAMATIC RECOVERY”

I had the opportunity this week to reconnect with legendary resource financier and investor, Rick Rule, Chairman of Sprott US Holdings.
It was a fascinating conversation as Rick spoke to the characteristics of market capitulations, of which set the stage, “for absolutely dramatic recoveries”. Rick added that it’s the duty of honest investors to “reorganize their portfolio’s at the bottom”, to ensure they are exposed to the best names in the business, ahead of the inevitable recovery.“Those investors who are honest with themselves and reorganize their portfolios at the bottom, selling the worst of the companies, no matter how painful it might be, and redeploying the assets in strong but oversold companies—enjoy returns in the inevitable recovery that can be 250%, 350%, or 500%…If you think about the math, you give back 35% to 50% [on the downturn] and you make 250% to 500% on the upturn. Overall, that’s pretty good math.”